Bitcoin Nears $30,000 as huge Outflows Continue On Coinbase
The Bitcoin price has continued to push even further after breaking the previous all-time high it reached in 2018.
Now, it has hit another all-time high of $29,600, with many experts predicting more bull run as we enter a new year. The past 48 hours have seen heavy Bitcoin transaction activities in top crypto exchange platform Binance. Experts have also stated that the recent price surge of the top cryptocurrency is a result of the increased intense Bitcoin buying activities on Coinbase.
The Coinbase Pro exchange has registered massive Bitcoin outflows, as CryptoQuant chief executive officer Ki-Young Ju has pointed out.
He noted that more than 12,000 BTC have flowed out of the exchange to multiple cold wallets, which could trigger big over-the-counter (OTC) deals.
“12,063 $BTC just flowed out from #Coinbase, he noted via Twitter.
He further said it may be tough for Bitcoin to break into $30, 000, but institutions are just buying more and don’t seem to care.
The OTC deals are generally carried out by institutions that buy in huge quantities.
Bitcoin dip buyers influencing the market
Although it’s not so straightforward to correctly predict the OTC transaction volumes, there are some helpful on-chain indicators to predict deals on OTC.
Also, large volumes of stablecoins have are being deposited on exchanges. The huge deposits of stablecoins also show a bullish signal since it’s similar to cash deposits at exchanges for buying crypto.
Ju said the weekly Bitcoin chart shows there has been a massive transaction volume surge after any dip.
Another analyst Joseph Young pointed out that Coinbase users have been buying the Bitcoin dips heavily in the past two days.
He also argued that Coinbase BTC Dip buyers have a huge say in the market, as their activities alone can push the direction of Bitcoin price. Young pointed out the fact by referring to the November dip when Bitcoin was selling within $16,000. Young said the same Bitcoin dip buyers rescued the coin when it dropped value in November.
Institutional Investors Still Buying More Bitcoin
Young was also quick to point out that Bitcoin could face strong resistance at $30,000, similar to what happened when it reaches the $10,000 and $20,000 resistance. When Bitcoin hits $30,000, there will be massive sell orders hovering at Bitfinex and Binance.
“I expect Bitcoin to react to $30,000 the same way it did when it first neared $20, 000,” he stated, adding that some institutional investors are still acquiring more Bitcoins, which clearly shows they are not bothered.
